3 Stocks That Will Never Reach Their All-Time Highs Again: Facebook, Netflix, Peloton

By Douglas A. McIntyre Published Jan 24, 7:26AM EST

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3 Stocks That Will Never Reach Their All-Time Highs Again: Facebook, Netflix, Peloton — © Scott Heins / Getty Images

As the stock market plunges and the Nasdaq moves into correction territory, almost four out of 10 of the stocks in the Nasdaq Composite have share prices down 50% or more. Some will never return to the all-time highs, more because of broken business models than what will happen with the broader market.

Netflix Inc. (NASDAQ: NFLX | NFLX Price Prediction) recently announced a slowdown in new subscribers. Its shares have an all-time high of $700.99, but they have dropped to below $380. The most brutal news is that the company believes subscriber growth from the fourth quarter of last year through the first quarter of this year will only be from 221.84 million to 222.34 million. Management hinted that competition was partially to blame. In reality, Netflix is up against streaming giants Disney and Amazon, along with several other well-funded streaming services from the likes of Apple.

Peloton Interactive Inc. (NASDAQ: PTON) has been so badly beaten down that shareholder Blackwell Capital wants its CEO fired and the company sold. The reasons for the demand are that Peloton’s products have developed a negative reputation and management has suggested it may make layoffs and cut back production. Several competitors have emerged as well. None may be as large as Peloton, but there are enough of them to erode market share. And the “exercise from home” trend has become less popular as more people brave the risk of COVID-19 infection to return to gyms. The stock has traded as high as $166.57 and recently has fallen to around $24.

Facebook, now called Meta Platforms Inc. (NASDAQ: FB), has one of the largest market caps in the world at $843 billion. The stock’s all-time high is $384.33 a share. Recently, it has traded near $303. The company faces two headwinds. Revenue growth has slowed, as has the rate of increase in earnings. More troubling, the company is under siege by a number of governments, some of which want to regulate Meta Platforms. The social media company has become a platform for misinformation and hate speech. Some critics go so far as to claim activity on Facebook has attempted to affect elections and has lengthened the pandemic by disseminating false information about COVID-19 vaccinations.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.